Economic Development Corporation Announces Management Shakeup

The Elk Grove Economic Development Corporation, the public-private partnership formed to attract businesses to Elk Grove, officially announced Thursday the departure of Executive Director Steve Czarnecki and the naming of a new chair for its board of directors.

Cosumnes River College President Deborah Travis will take over as board chair, filling the vacancy left by Tim Moran, who resigned earlier this spring shortly before leaving his position as an executive at Catholic Healthcare West.

The management change comes as the EDC has faced criticism for creating far fewer jobs than was originally expected and failing to file audits of its performance to the Elk Grove City Council as required under its contract.

Of the 1500-job target set by city leaders when they funded the EDC in 2007, only about 70 positions materialized, according to City Manager Laura Gill's report at .

The EDC released a statement characterizing Czarnecki's departure as part of a reorganization that would "bring greater clarity and balance between the City of Elk Grove, the Chamber of Commerce, and the EDC..."

In an interview, Travis said Czarnecki's dismissal, which she did not call a firing, had more to do with the organization's financial situation than his abilities. 

"The board did a review of the operations of the corporation and the current financial circumstances made it necessary to implement a reduction of our staff," she said.

Czarnecki could not be reached for comment Thursday.

Elk Grove Mayor Steven Detrick, who sits on the board, said in the statement that the changes "will have a positive and sustainable impact on economic development and will strengthen the fabric of the local economy."

Jim Cline of Frontier Communications will co-chair the EDC with Travis and Gregg Mason of Jackson Properties will continue as treasurer, according to the release.

The corporation has not announced a replacement for Czarnecki. City staff last week floated the idea of hiring an in-house Economic Development Director to take over some of the EDC's functions; the council is set to make a decision on that proposal at its May 25 meeting.

Travis said the EDC had recently completed an audit of its finances for the 2007-2011 period and the results would be submitted to the city by the end of the month.